Anti-fiat gold prices weakened during Thursday’s North American trading session, extending the near-term downtrend since the beginning of this month. XAU/USD was likely pressured by a combination of a stronger US Dollar and rising longer-term Treasury yields. The 10-year rate closed at its highest since the beginning of this week.
Stronger-than-expected US retail sales data was likely the key culprit, rising 0.7% m/m in August versus -0.7% anticipated. Excluding automotive and gas sales, transactions increased 2.0% versus 0.0% anticipated. The data likely continued fueling the Fed tapering timeline debate after mixed US jobs and CPI data. This comes ahead of next week’s FOMC monetary policy announcement.
Over the remaining 24 hours, gold traders ought to keep an eye out for University of Michigan Sentiment data. Preliminary estimates for September point to a 72.0 outcome, which would be higher than the 70.3 result in August. Another rosy print could further push of bond yields and the US Dollar, placing the yellow metal at risk. Likewise, a softer result may offer some cushion to XAU/USD.(S.R trading club)
Stronger-than-expected US retail sales data was likely the key culprit, rising 0.7% m/m in August versus -0.7% anticipated. Excluding automotive and gas sales, transactions increased 2.0% versus 0.0% anticipated. The data likely continued fueling the Fed tapering timeline debate after mixed US jobs and CPI data. This comes ahead of next week’s FOMC monetary policy announcement.
Over the remaining 24 hours, gold traders ought to keep an eye out for University of Michigan Sentiment data. Preliminary estimates for September point to a 72.0 outcome, which would be higher than the 70.3 result in August. Another rosy print could further push of bond yields and the US Dollar, placing the yellow metal at risk. Likewise, a softer result may offer some cushion to XAU/USD.(S.R trading club)